SIP Vs EMI Which is Best

In this digital age, finance resources are the one thing that everyone faces in their life. Today we are going to discuss the two main pillars of these whole financial cycles i.e. Systematic Investments (SIP) and Equated Monthly Installments EMI. Both are a monthly form of amount debited from the bank albeit one goes for future investment while the other is paid expenses for your home, car or any other type of loan.  SIP and EMI are two different ends of similar financial fundamental that we see people get stuffed these days with advertisements, marketing, and personal choices in buying home for their families respectively.

EMI

Equated monthly installments or in short EMI are the fixed monthly amounts that we set to pay against the amount that we have taken from the lenders or banks in current financial structure. There are hefty interest rates that one need to pay and an amount is set as per the duration of the years set while taking the loans initially. EMI’s are better adjusted for your needs when there is an emergency of large funds that one can use to make the appropriate arrangement like home loans which are then used to buy Ownership of the land simultaneously.

Nature of Finance

SIP Mutual Funds are purely investment and offer better futuristic choices while the EMI is more so considered as a burden on the expenses level that you have to give every month. Any delay or default can lead to hefty fines as well as rocketing interest rates that will further add the burden of interest on your family. Whereas in case of SIP missing 2 or 3 installments will not affect the whole process at all and will run systematically without any effect. On the other hand, these SIP’S can be stopped anytime whereas EMI will stay for the duration of time until you can pay those in one go.

Personal Goals

In today’ world young generation can take either way for fulfilling their goals take loans for their home and give EMI for 20 to 30 years with specified interest or go for SIP investment that will again secure your future in a more comprehensive financial way. Both will lead to a better lifestyle for sure but SIP is purely on investment side whereas EMI can kill your dreams entirely. In case of recession or leaving Job can create a lot of financial mess around your family whereas in SIP life offers better choices with buildup for personal goals in life. With SIP you make the individual habit of saving for their life with discipline and maintain their life in balance with suitable financial resources lifetime.

At Wealth care India, we are the financial experts for advising and placing your funds in the right stocks to care of all your personal financial portfolio needs. Our online platform covers all the important needs of investors to check, monitor and regularly update their financial investment vis-à-vis current standings in the market. We work on long-term wealth creation goals that will satisfy all your future needs with right financial backing.